Know the Danger of Not Checking Your Credit Report

07-Feb-2018 written by : FSI-Team

3 Tips to Get Your Personal Loan Approved

There are a lot of things which we plan to make life easy. Things like what kind of house should I buy? Which car will suit my personality and stature? These are complex plans which include a lot of planning. How about planning the monthly budget, how to cut luxury expenses during money tight months, etc. By every month end, you make a report and evaluate your performance on how you did and what are the things you need to take care of in the future. This helps you be on good financial tracks and help you make savings which can help you in future.

For many of us checking our credit report is not on the to-do priority list unless you plan to take a financial product in near future. What people fail to understand is that checking your credit report regularly should be on your priority list. You can opt for a free cibil report online from many websites who provide financial services.

If you are in urgent need of money and the only option available is to get a loan, a good credit score can come handy in such situations. Instead of getting to know your cibil score after your loan application getting rejected, it's suggested to always be prepared by knowing your credit score before applying for a loan.

So many of you might be thinking, is it really that necessary to check the credit report regularly? What happens if I don't? How will this affect me in the long financial run?

Well, we have a perfect explanation for your doubts.

You can be a victim of identity theft

There is a lot of identity theft reports registered in recent years. An identity theft is someone else banking on your credit report. This usually happens when the lead credit holder is dead or you have been passing your information to a lot of lenders. In such cases, the identity thief will apply for a loan or a credit line by showing your credit report and if in future the person does not pay his/her dues on time your cibil score goes for a toss.

If you happen to understand such problem while checking on your cibil report, you can go ahead and report it to the bureau and also can take civil actions against the identity thief.

Your credit report might hold wrong information

You make all your payments on time. You feel proud and confident of your financial integrity and have an idea that this practice can help you bank on large loans in the future. You suddenly encounter an unexpected event in your life and are in urgent need of cash, feeling confident you apply for a loan and your loan gets rejected! You try to find the exact reason why your loan got rejected, the problem being a low cibil score.

These are cases of incorrect information fed towards your account by the credit bureaus. The lenders send monthly reports to the credit bureaus on your financial activity and then the credit bureaus add such entries to your report. Sometimes the data is either incorrectly stored or someone else's credit score is added to your account; this is, of course, human error.

If checked your cibil report on a regular basis, you can prevent such thing to happen with you.

Loan applications getting rejected

You can encounter such situation where, whenever you are applying for a loan or a credit card your applications get rejected. There are high chances of a bad account being on your report which creates a block for you to get a credit line.

In such cases, you should check your report regularly and if you find such accounts lying on your report, you can report it to the bureaus and on the bureau's discretion, the accounts can be deleted from your report.

A life's road is full of danger, there are a lot of dangers in life which you cannot evade, but you have opportunities to figure out how to evade danger in many cases, same goes with your cibil score. If you happen to know the importance of knowing your credit score, you will check the report regularly which will help you in long runs.



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